Commonwealth Consolidated Acts Commonwealth Consolidated Acts(1) Subject to subsection (3), the Secretary may cancel subsidy on a subsidised advance in respect of a person, or the assignee of a person, if:
(a) the person has died; and
(b) 3 months has elapsed from the date on which the person died; and
(c) the Secretary is satisfied that there is no surviving spouse or de facto partner of the person, to whom a certificate of entitlement could be issued under section 22, in relation to the land or land and dwelling - house concerned, or in relation to the right of residence in the retirement village concerned (as the case requires); and
(d) the Secretary considers it appropriate to cancel the subsidy.
(2) Subject to subsection (3), the Secretary may cancel subsidy in relation to a portfolio asset entered into by a person if:
(a) the person has died; and
(b) 3 months has elapsed from the date on which the person died; and
(c) the Secretary is satisfied that there is no surviving spouse or de facto partner of the person, to whom a certificate of entitlement could be issued under section 22, in relation to the land or land and dwelling - house concerned, or in relation to the right of residence in the retirement village concerned (as the case requires); and
(d) the Secretary considers it appropriate to cancel the subsidy.
(3) If subsidy is being paid in respect of 2 persons who are spouses or de facto partners of each other who, under subsection 4A(1), are treated together as an eligible person for the purposes of this Act, the Secretary may only cancel subsidy under subsection (1) or (2) if:
(a) both spouses or de facto partners have died; and
(b) 3 months has elapsed from the death of the spouse or de facto partner who died last.
(4) If the Secretary cancels subsidy under subsection (1) or (2), the Secretary must:
(a) give a notice of cancellation to the executor or personal representative of the person who has died; and
(b) give a copy of the notice of cancellation to the credit provider; and
(c) in the case of an assigned advance--give a copy of the notice of cancellation to the assignee.
(5) The cancellation takes effect, and the subsidy concerned ceases to be payable, on the date specified in the notice, being a date not earlier than the date of the notice.
(6) If the Secretary cancels subsidy under subsection (1) or (2), the credit provider may, from the date when the cancellation of subsidy takes effect, charge an interest rate in relation to the advance that is an interest rate applicable to similar loans provided by the credit provider to mortgagors generally.